BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 552|
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CONFERENCE COMPLETED
Bill No: SB 552
Author: Kelley (R)
Amended: 2/22/00
Vote: 21
ALL PRIOR SENATE VOTES NOT RELEVANT
CONFERENCE COMMITTEE COMMITTEE : 6-0, 8/28/00
AYES: Senate Members: Kelley, Alpert, and Bowen
Assembly Members: Longville, Keeley, and
Zettel
ASSEMBLY FLOOR : 77-0, 7/6/00 (Passed on Consent) - See
last page for vote
SUBJECT : County water authorities
SOURCE : San Diego County Water Authority
DIGEST : This bill allows the San Diego County Water
Authority to market electricity and natural gas in the
event an opportunity arises to use its distribution
network.
Specifically, this bill provides that the San Diego County
Water Authority may own and operate works for supplying its
member agencies with gas and electricity. They also
provide that the San Diego County Water Authority may, by
contract, purchase gas and electricity from the United
States, the State of California, and any other public
agency or private entity and sell the gas and electricity
CONTINUED
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to any public agency or private entity engaged in retail
sales of electricity and gas.
Conference Committee Amendments narrow the scope of the
bill to the San Diego County Water Authority only.
ANALYSIS :
Existing Law
The San Diego County Water Authority is in the process of a
proposed emergency water storage facility at Olivenhain.
This reservoir will be located near Lake Hodges, but at an
elevation 760 feet higher. By connecting the two
reservoirs with a pipeline, the project will create the
potential for "pumped-storage" generation of hydroelectric
power. Water will be pumped uphill from Lake Hodges to the
Olivenhain Reservoir at night or at off-peak times when
power costs are relatively low, then returned and used to
generate power during peak times when demand and power
costs are relatively high. The projected generation
capacity of this system will probably be between 100 and
150 megawatts of electricity.
As is well known, San Diego County is currently suffering
high power rates due to the effects of deregulation of the
electricity market. By providing the San Diego County
Water Authority the statutory authority to market
hydroelectric power and gas, this bill will enhance the
potential for generating sufficient power to meet future
demand.
What this bill will not do, is provide immediate or
short-term relief. The Olivenhain project is still in the
planning stage. All federal or state sources of power are
fully subscribed for several years to come. Without the
authority provided by this bill, however, the San Diego
County Water Authority will not be able to make use of
opportunities that may become available.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 8/28/00)
San Diego County Water Authority (source)
ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs,
Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,
Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Florez, Frusetta, Gallegos, Granlund, Havice,
Honda, House, Jackson, Keeley, Knox, Kuehl, Leach,
Lempert, Leonard, Longville, Lowenthal, Machado, Maddox,
Maldonado, Margett, Mazzoni, McClintock, Migden, Nakano,
Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan,
Pescetti, Reyes, Romero, Runner, Scott, Shelley,
Steinberg, Strickland, Strom-Martin, Thompson, Thomson,
Torlakson, Villaraigosa, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
TSM:cm 8/29/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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